Rs 400 crore, Rs 600 crore, Rs 1000 crore...: Rich Indians are buying luxury properties across India due to...
Representational Image/File
From lavish bungalows in the Mumbai's upscale Malabar Hill to expensive apartments in Lutyens, Delhi, the sale and purchase of luxury real estate by India's ultra rich has increased at a rapid pace in recent times. According to a report by the Economic Times, Leena Gandhi Tewari, the chairperson of pharmaceutical giant USV Private Limited, recently purchased two duplex flats, with a combined area of 22,572 square feet, in Mumbai's Worli for Rs 635 crore.
The deal is being touted as the most expensive in India, with each square foot of space costing a whopping Rs 2.83 lakh, as per the report.
Additionally, the Kotak family has bought an entire sea-facing building in Mumbai for Rs 628 crore, while DMart owner Radhakishan Damani purchased a vintage bungalow in the posh Malabar Hill area for a staggering Rs 1000 crore. Why India's ultra rich are investing in luxury real estate?
As per experts, there are a multitude of factors responsible for the country's uber-rich deciding to invest in luxury real estate, such as the rising demand in the real estate market for luxury homes. However, the number of such properties is still relatively compared to the demand, especially in highly-sought areas like Lutyens, Delhi, Mumbai's Worli, and Golf Course Road in Gurugram.
This unequal demand and supply scenario in the luxury real estate market has resulted in prices of these properties skyrocketing in recent times, which can be gauged from the fact the Leena Tewari paid a record Rs 2.83 lakh per square feet for her duplex apartments in Mumbai, while one square feet at Gurugram's DLF Camellias costs around Rs 1.17 lakh.
Notably, the ultra rich are not buying these properties for habitation, they plan to monetize them. As per reports, the Kotak family plans to rebuild the sea-facing building they recently purchased in Worli, and likely turn it into a luxury apartment building. Luxury real estate prices skyrocketing in Indian metros
Luxury real estate prices in India metros and tier-I cities are surging at a rapid pace, with Mumbai, Bengaluru and Delhi ranked among 15 world cities where prices of luxury homes are increasing the fastest, as per a report by Knight Frank. Bengaluru ranks 4th on the list, followed by Mumbai at 5th, and Delhi at the 15th spot.
According to market data, India's luxury home market grew by 28% in FY23-24, with Delhi-NCR topping the sales. Together, Bengaluru, Mumbai and Delhi-NCR accounted for 67% of the total investment in luxury real estate, showcasing these cities as major real estate hubs in the country.
Notably, the number of high net worth individuals (HNIs) increased by 6% to 85,698 in 2024, and the number is expected to reach 93,753 by 2028, according to the Knight Frank Wealth Report 2024. The report noted that HNIs in India invested 32% of their wealth in real estate in 2024, while the figure was 25% in 2020.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NDTV
25 minutes ago
- NDTV
How Much Will Home Loan EMI Drop After RBI's Repo Rate Cut
New Delhi: If you have a home loan, your EMI is set to reduce by over Rs 1,500 a month thanks to the Reserve Bank of India's latest move. With the central bank cutting the repo rate by 50 basis points -- from 6 per cent to 5.5 per cent -- banks are expected to lower interest rates on loans. For a Rs 50 lakh home loan over 20 years, this could mean monthly savings of Rs 1,569 and annual savings of nearly Rs 19,000, offering much-needed relief to borrowers amid high living costs. The repo rate is the interest rate at which the RBI lends money to commercial banks. A reduction in this rate makes borrowing cheaper for banks, which in turn allows them to offer loans to customers at lower interest rates. This directly impacts borrowers, especially those with home loans linked to repo-based lending rates (RBLR). Let's break this down with a practical example. Suppose you have a home loan of Rs 50 lakh at an interest rate of 8.5 per cent for a tenure of 20 years. Your monthly EMI in this case would be around Rs 43,391. Now, after the 50 basis points cut in the repo rate, if the bank reduces your interest rate to 8 per cent, your new EMI would come down to approximately Rs 41,822. Gaurav Gupta, Secretary of CREDAI (Confederation of Real Estate Developers' Associations of India), welcomed the RBI's monetary decision, saying that the rate cut will help reduce borrowing costs for home buyers. Beyond just lowering monthly payments, it will improve housing affordability across the country. He further added that a drop in interest rates not only benefits individual buyers but also boosts overall sentiment in the real estate sector, which positively impacts multiple industries connected to it. Importantly, it's not just home loans that will get cheaper -- personal loans, auto loans, and other types of retail borrowing will also see reduced EMIs as a result of lower interest rates. (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
NDTV
25 minutes ago
- NDTV
How Horses, Mules Helped In Navigating Steep Slopes To Build Chenab Bridge
Katra: To make the vision of "Kashmir to Kanyakumari" come alive, the project team behind the construction of the Chenab bridge faced several challenges. Among them was how to reach the location surrounded by the steep slopes of the Himalayas. The team had only one option -- horses and mules. According to Afcons Infrastructure Limited, the top infrastructure company that constructed the bridge, one of the main and earliest challenges was access to the bridge location, to transport equipment and construction materials. "Initially, mules and horses were used by the project team to reach the location. Slowly over a period, temporary roads were created and access was made available to the site," a spokesperson from the company said. Prime Minister Narendra Modi on Friday inaugurated the iconic Chenab Bridge, Anji Rail Bridge and Udhampur-Srinagar-Baramulla Rail Link (USBRL) project and flagged off Vande Bharat trains, connecting Kashmir to Kanyakumari. The spokesperson added that eventually on the North side of the river bank, an 11-km road was constructed and a 12-km long road on the South side. Krishnamurthy Subramanian, Executive Vice Chairman, Afcons, said the Chenab Railway Bridge is more than just a marvel of engineering. "It is a symbol of India's resolve to conquer the most formidable challenges with ingenuity and courage," Subramanian told PTI. The company used the world's tallest crossbar cable cranes and specialised heavy machinery as tools for this ambitious project. "The ancient and steep slopes of the Himalayas were tamed using massive consolidation grouting, making them sturdy for the colossal arch foundations," the company said, highlighting challenges it faced. "With the foundations set, the erection of the arch from both sides was planned by cantilever construction technique. The first big moment of triumph came on April 5, 2021, when a single majestic arch approaching steadily from both banks met at the crown," it added. "The viaduct construction was another unique challenge. There were multiple transition areas. Keeping this in mind, the launching sequence was meticulously planned in four sections," the spokesperson. Giridhar Rajagopalan, Deputy Managing Director, Afcons told PTI that for the first time in Indian Railways, incremental launching was done on transition curve and a longitudinal gradient, both occurring at same location, for the deck launching of the viaduct portion of the Chenab Bridge. S Paramasivan, Managing Director, Afcons, "For Afcons, it represents our unwavering commitment to nation-building and our ability to reimagine infrastructure in the toughest terrains. This bridge will inspire generations of engineers and stands as a tribute to the power of Indian engineering and teamwork." For the first time in the Indian Railways' history, a laboratory accredited by the National Accreditation Board for Testing and Calibration (NABL) was set up to ensure that quality was being monitored at every stage of the project. Situated at a height of 359 metres above the river, the Chenab bridge is 35 metres higher than the iconic Eiffel Tower in Paris and the world's highest railway bridge over the Chenab river. After inaugurating the Chenab bridge, the prime minister walked on it holding the Tricolour high. He travelled in a rail engine coach to reach the spot.
Time of India
26 minutes ago
- Time of India
Vadaj land prices up 15-fold in 10 yrs, Kandla port trust surrenders plot
Ahmedabad: In proof of the city's booming real estate market, land prices in the western areas have skyrocketed over 15 times in just one decade, forcing Deendayal Port Trust (DPT) in Kandla to surrender a prime plot in Vadaj back to the Ahmedabad Municipal Corporation (AMC). Tired of too many ads? go ad free now This price increase came to light when the AMC's standing committee approved the DPT's request to surrender a 1,945 sq m plot in Vadaj village on Thursday. The plot, originally allocated in 2010 for a guesthouse at Rs 14,000 per sq m, was revalued at Rs 2,15,927 per sq m in 2020 — a 1,442% increase. If the plot were to be revalued again, the price could potentially be higher. The case dates back to July 2010 when the standing committee approved allocation of the plot in Naranpura TP Scheme No. 29 to DPT. The AMC set a reserve price of Rs 14,000 per sq m but included a condition requiring payment of any additional amount determined through govt revaluation. DPT initially deposited Rs 2.72 crore based on the reserve price and took possession in Jan 2011. However, the promised revaluation became a decade-long saga. "Despite the municipal corporation writing to the state govt's valuation department approximately eight times between 2010 and 2019, no assessment was conducted. The valuation finally occurred in 2020, revealing the huge price appreciation," an official said. "Following the 2020 valuation, DPT faced a massive financial burden. It was required to deposit Rs 39.27 crore to cover the price difference and an additional Rs 84 lakh for valuation process expenses. DPT appealed to pay up based on the old reserve price, but authorities rejected the request," the official added. DPT compounded its troubles by failing to fulfil the land agreement's construction requirement. Tired of too many ads? go ad free now The agreement mandated building construction within two years of possession for the designated purpose, but this was not done, in clear violation of the terms. So AMC ordered that the amount be deposited based on the valuation. It stated that proceedings to reclaim the plot will be initiated if DPT fails to deposit the amount. This prompted DPT to propose surrendering the property instead. "The standing committee's approval of DPT's proposal means the AMC will now reclaim the plot while returning the remaining amount to DPT after deducting valuation expenses from the amount deposited in 2010," an AMC official said.
